Professional Tax
Professional Tax in Maharashtra — Slabs & How to Calculate
Maharashtra charges no professional tax below ₹7,500/month, then ₹175/month up to ₹10,000, then a flat ₹200/month above that — ₹300 in February — for a ₹2,500 annual total.
Maharashtra uses a three-tier structure rather than a single cliff: nil up to ₹7,500, a reduced ₹175/month for the ₹7,501–₹10,000 band, and a flat ₹200/month above that — so a salary just over ₹7,500 owes noticeably less than one well above ₹10,000.
Like Karnataka, the annual total is capped at ₹2,500 under Article 276(2) of the Constitution — eleven months at ₹200 plus ₹300 in February makes up the difference, for anyone in the top slab.
Employers deduct this monthly from salary and deposit it with Maharashtra's Goods and Services Tax Department (which also administers professional tax). Self-employed professionals and business owners above the threshold register and pay it directly, typically annually.
Worked example
A standard month works out to ₹200.00. A ₹12,000-a-month salary: ₹200/month for most of the year, ₹300 in February. A ₹9,000/month salary falls in the middle tier at ₹175/month instead, and ₹6,000/month owes nothing at all.
Frequently asked questions
Why does Maharashtra have three tiers instead of one threshold?
It's a deliberate step structure — nil, then a reduced rate, then the standard rate — rather than a single cliff like some other states use. Someone just above the exemption threshold pays less than someone well into the standard band.
Why is February different from other months?
The slab is structured so the annual total lands on exactly ₹2,500, the constitutional cap. Eleven months at ₹200 comes to ₹2,200, so February carries the remaining ₹300.
How do self-employed professionals pay this in Maharashtra?
They register with the state GST Department and pay directly, typically as an annual amount, rather than having an employer deduct it monthly.